IRENA New Report: Unlocking Renewable Energy Investment: The role of risk mitigation and structured finance

1 July 2016

IRENA has released a new report: Unlocking Renewable Energy Investment: The role of risk mitigation and structured finance. This publication analyses various financial instruments and structures and offers an all-in-one guide to policymakers, financial institutions and project developers of actions to scale up renewable energy investment worldwide. 

To increase deployment of renewable energy to the levels needed to meet global climate and development goals, investment must almost double by 2020 and more than triple by 2030. The report finds that this is entirely possible, if policymakers and public finance institutions employ a portfolio of approaches, financial instruments and tools that target different investment constraints.

Case studies and survey results provide insights on the challenges, opportunities and best-practices in different markets, demonstrating what can be done to mobilize investments. The resulting report suggests practical recommendations under five main action areas, where policy makers, public finance institutions and project sponsors can address risks and barriers for renewable energy projects.

The report highlights the role of public finance institutions in leveraging private investment through the targeted use of risk mitigation instruments and via local financial institutions, for instance through on-lending facilities. International organizations and industry associations can also contribute to improving the quality of project pipeline and facilitating project development.

The ability to move the transition fast enough will depend on how different actors, developed and developing countries, and public and private sectors take action. Building on the ongoing partnerships with governments, international finance institutions and other stakeholders, IRENA will continue to support this agenda and welcomes your ideas and suggestions for collaborations and participation in moving the action agenda outlined in this report.